Etoro probably wants to go public with Spac

According to financial circles, the securities portal is apparently forging stock market plans. The booming model of the wallet could be used here. There is already talk of a billion dollar valuation.

The stock exchange on the smartphone: users with an Etoro app

Dhe investment platform Etoro wants to go public with the help of a jacket called a spac. After the merger of the two companies, the joint company should be valued at around 10 billion dollars, reported the Bloomberg news agency on Tuesday, citing people familiar with the matter. In the course of the merger, Etoro and the financial vehicle FinTech Acquisition Corp. V Raises $ 650 million in new stock issuance.

A Spac (Special Purpose Acquisition Company) is a company that is already listed with the main objective of getting another company public more quickly. In this way, companies save fees that they would have to cede to investment banks in a normal IPO and save time for the formal processes. In the United States, the issue of Spacs has recently boomed – and the instrument has recently become more fashionable in Europe.

Spreads instead of data as a source of money

According to its own information, Etoro was founded in 2007 and has around 20 million registered users. In 2018, the investment platform expanded to the United States, and the recently booming stock trading will soon be possible there. Just like its rival Robinhood, Etoro insists on taking no commission from trading. Etoro earns money on the so-called spread on the purchase price, while the competition sells data on the shares traded by private investors to institutional investors such as hedge funds.

The Spac FinTech Acquisition Corp. V was recently launched and floated on the stock exchange by former bank manager Betsy Cohen. The papers have been listed on the Nasdaq since January. The price has barely moved since then and closed on Monday at $ 10.71 at the level of the first day of trading and slightly above the issue price. The market capitalization is currently close to $ 370 million. The news of a merger with Etoro, however, caused the price to skyrocket significantly after the trading day.